No divident declaration by Manappuram??
They keep paying interim div. per quarter. What else you are looking for?
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"Manappuram has been immune to the ongoing liquidity crisis given its ALM profile and robust profitability
In our view, it will continue to act as a ‘safe haven’ with stable business trends and an undemanding valuation (8 times P/E and 1.7 times P/ABV on FY21 basis)," said the brokerage.
consolidated AUM is expected to witness 18-20 per cent CAGR over FY19-21
Gold aum @10%
And Rest of AUM at very high rate
RBI is interested in promoting ethical NBFCs
current NBFC crisis will filter out all bad NBFCs and the strong reputed NBFCs will come out even stronger
Is there more steam left in gold financing companies?
High ROA business
Stable asset quality
Possibility of distant banking license could rerate these stocks
Manappurams non gold business can give good upside
In India non organised gold sector is
2-3 times ,so good market opportunity in terms of size
Bad mansoon can result in headwinds
Suggested to wait for weakness as an accumulation opportunity in both manappuram and muthoot
Centrum broking come out with price of 157 rs
“On the back of expectations of improvement in gold loan growth and robust growth in the new businesses, we estimate 28.4 per cent CAGR in consolidated AUM to exceed the Rs 32,000 crore mark by FY21. This, along with maintaining opex and lower NPAs, helps maintain our positive stance on the stock of MFL with buy rating and a target price of Rs 157, valuing the stock at 2 times its FY21E ABV,” the brokerage said
fy21 EPS expectations around 15rs
Profit growing at 15-20% with decent ROE of 15 -20 should deserve PE of 15
Risks : gold price going down
Rbi regulatory risks
GeoPolitical risks
Global recession
Single man show me Nandakumar
Relatively better valuations considering market PE of 24 (almost double of manappuram )
Most most important thing will be to keep an eye on future NPA given the rapid growth in non gold segments
If they can keep the future NPA under control then it will be good
If NPA starts going up then rating will be downgraded
However, on the cost front, RBI’s latest notification on credit rating-based lending will also have positive impact on cost of fund,” analysts at Narnolia Financial Advisors said in result update.
I Unnikrishnan and Sachin Agarwal, two senior persons mentioned in this post from MFL. Both of then are not found in current management team.
- There has been change in the designation of Mr. I Unnikrishnan from ED and deputy CEO to Non- Executive Director w.e.f. 30th Novemebr 2014.
- Mr.I.Unnikrishnan stepped down as a director of the board of the company w.e.f 05.11.2015.
Sachin Agarwal was a Senior vice president.
Good days ahead for gold
There is a huge spike in gold loans in Q4 2019.
See the following url
Maybe due to other NBFC’s having funding issues.
Nandkumar VP
Business going as usual and not affected by liquidity crisis due to positive asset liability ratio
How to take it for gold loans companies!
Generally, higher price benefits as deposited gold becomes costlier.
But, if people will have less gold then they will take less loans on gold. So, is it good in short term and bad finally for these NBFCs!
High gold price means people can take more loan on preexisting gold
Secondly asset will increase
Thirdly market sentiment towards gold loan companies will be positive
Higher gold price is good in both short as well as long term
Higher gold prices means the LTV (Loan to value) increases. This clearly increases the profits of the company as the AUM increases.
http://www.careratings.com/upload/CompanyFiles/PR/Manappuram%20Finance%20Limited-07-05-2019.pdf
Long term AA
Short term A1+
Outlook stable